Decentralized decision making is very controversial in a corporate environment.Central office managers feel like they are losing control of managers in specific plants or regional offices.What are some of the issues that must be reviewed before making the final decision on where to place final decision-making power?

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The Answer is Benefits of decentralization include more efficient use of local knowledge,ability to motivate local managers,and conservation of upper management time.Costs may arise from incentive conflicts,lack of coordination among local decision makers,and less effective use of central information.It may be acceptable to lose some control of local managers as long as a good incentive and evaluation system can be set up for local decision makers.In highly competitive markets,large organizations can respond more quickly to market changes when decision making is decentralized.

Decentralized Decision Making Is Very Controversial in a Corporate Environment